WEEKLY CAPITOL UPDATE
VETERANS DAY
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WEEKLY CAPITOL UPDATE
Thursday, Oct. 29, 2009 * Volume 4, No. 43
NIXON ORDERS ANOTHER $203.7 MILLION IN BUDGET CUTS
With state revenue collections for the first quarter of the 2010 fiscal year down 10 percent from the same time a year ago, Gov. Jay Nixon on Oct. 28 ordered another $203.7 million in midyear cuts from the state operating budget. Nixon had previously cut $82.8 million from the FY 2010 operating budget and another $347.2 million in capital spending over the next two years.
The cuts will result in the elimination of about 200 full-time and 500 part-time state jobs. Since January, the state workforce has been reduced by about 1,900 full-time jobs. Although many of the previously eliminated positions were vacant, most of the jobs affected by the latest round of cuts will require actual employee layoffs.
Core spending for K-12 education, higher education and health care were spared from the cuts, but some programs related to education and health care took hits. For example, a $15.8 million increase in transportation funding for local school districts was eliminated, essentially keeping state funding for busing costs at the FY 2009 level. Also, the state will cease funding its online school program after the current semester, although local school districts may continue to provide those services if they choose to assume the cost.
While Missouri’s colleges and universities were spared from cuts to their state appropriations for operating purposes, several programs related to the University of Missouri System each took 25 percent cuts. Among them are UM’s telemedicine program, the MORENET Internet connectivity program for public schools and libraries, the university’s hospitals and clinics, and the State Historical Society.
Medicaid eligibility was also left untouched, but the state expects to save $32.45 million through “cost containment” efforts, such reducing some provider reimbursements and greater use of generic prescription medications. The state is also eliminating grants for life sciences research for a savings of about $13 million.
WAL-MART TOPS EMPLOYERS WITH SUBSIDIZED WORKERS
Wal-Mart Stores Inc. topped the list of Missouri employers with the most workers receiving taxpayer-funded health care coverage through the state’s Medicaid program, according to a report by the Missouri Department of Social Services. Of the company’s 39,000-employee Missouri workforce, 4,595 were on Medicaid from January through March of 2009.
Casey’s General Stores Inc. came in second on the list, with 1,035 of their more than 3,400 Missouri employees getting benefits. The state of Missouri came in third with 1,017 employees on Medicaid out of a workforce of more than 59,000 people.
A 2007 law required the department to compile quarterly reports starting in the summer of 2008 listing employers with workers receiving Medicaid. However, until recently department officials refused to produce the reports, claiming federal law prevented them from doing so. The current report is dated July 31 but wasn’t publicly released until requested by The Associated Press on Oct. 14.